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VOICE OF ELECTRICITY WORKERS
NTPC PLANS FORAY INTO DISTRIBUTION
The National Thermal Power Corporation (NTPC) is
planning to foray into power distribution in big way, and is in talks with the
Karnataka and Gujarat Governemnts for taking over distribution in Mangalore and
Baroda. The Thermal power generation utility, which has floated a wholly owned
subsidiary NTPC Electric Supply Company Ltd, has about 100 engineers waiting in
the wings for the first distribution assignment.
The utility is also exploring the possibility of taking over power distribution
in Indore and Gwalior in Madhya Pradesh and Navi Mumbai and Pune in Maharashtra.
It was also planning to supply electricity directly to several special economic
zones company executives said.
NTPC had, however, called off plans to take over distribution in Kanpur citing
lack of interest shown by the Uttar Pradesh government.
NTPC's entry into the distribution business signals fresh competition in the
sector, which has so far been dominated by two major private players, Reliance
Energy and Tata Power, and to some extent the RPG group. Reliance Energy and
Tata Power have also applied for distribution licences for lucrative circles in
Maharashtra and Gujarat.
In preparation for this entry into power distribution, NTPC had sent several of
its engineers on deputation to Tata Power and Reliance Energy. It is also
providing consultancy services to state electricity boards in cirlces where the
distribution system is being overhauled under the Accelerated Power Development
and Reforms Programme.
NTPC electric supply Company Ltd would, however, mark the utility's full
-fledged entry into the distribution business.
The foray into distribution is in line with NTPC's efforts to ensure forward
integration in the power sector.
(Courtesy: Business Standard: 15.3.2004)
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